Corporation tax

Applies to income earned by companies in Barbados, less allowable expenses.

This is not professional advice. If you need help with corporation tax, please consult a qualified tax advisor.

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Any company resident in Barbados is taxed on its worldwide income, whereas a non-resident company whose 'mind and management' is outside Barbados is only taxed on the portion of its income derived in Barbados.

Corporation tax is payable on a company's income less any allowable expenses incurred for the purposes of acquiring that income. The portion of income that is taxable is called the 'assessable income'.

Corporation tax rates

From Income Year 2024 effective January 1st, 2024, corporation tax will be 9%, subject to the following regimes:

Legacy rates (2019)

These rates applied to all companies between January 1st, 2019 and December 31st, 2023. For the avoidance of doubt, these rates also apply to revenue earned before January 1st, 2024 even if it falls within a company's Income Year 2024. [1]

For international shipping companies and in-scope Multinational Enterprises that are not subject to a Qualifying Domestic Minimum Top-Up Tax, these rates continue to apply from January 1st, 2024.

Up to BBD $1 million


Exceeding BBD $1 million but not exceeding BBD $20 million


Exceeding BBD $20 million but not exceeding BBD $30 million


Any amount in excess of BBD $30 million


[1] The corporation tax rates established in 2019 may not apply to an approved lender under the Mortgage Insurance Act, Cap. 233 by virtue of Section 16(1) of that Act. Persons to whom that Act applies should seek legal advice, as that Act was not amended by Parliament when those rates were established.

Frequently asked questions

Corporation tax applies to companies only. If you are self employed and operate as a sole proprietor, your earnings will fall under income tax even if you are trading under a business name.